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RE: LeoThread 2025-11-05 00-27

in LeoFinancelast month

Part 3/9:

The influence extends far beyond just the tech sector. The stock prices of major players like Nvidia—valued at over $5 trillion—are now heavily driven by AI hype. However, a closer look reveals that the entire ecosystem is interconnected. The concentration of market gains in a handful of large-cap stocks threatens to make hedge funds and institutional investors dangerously correlated, reducing diversification and increasing systemic risk.

The Problem with Overconcentration and Correlation